Legal Notes

Employee benefit program limits for 2008 are announced. To view a summary, click here.

IRS extends from January 1, 2008 to January 1, 2009, the effective date of a revenue ruling that provides guidance to employers on the use of smartcards, debit and credit cards, and other electronic media to provide qualified transportation benefits. Notice 2007-76, October 1, 2007.

IRS notice provides new transition relief and additional guidance on the application of Section 409A of the Internal Revenue Code to nonqualified deferred compensation plans. Notice 2007-78, September 10, 2007.

IRS issues proposed regulations on cafeteria plans, updating and consolidating more than 20 years of prior guidance. Proposed Rule, 72 Fed. Reg. 43938, August 6, 2007.

IRS issues final regulations related to retirement savings arrangements sponsored by public schools and charitable organizations (403(b) plans). Treas. Reg. § 1.4039b0-0 et seq., 72 Fed. Reg. 41128, July 26, 2007. DOL issued related guidance addressing whether affected plans will be able to comply with the new IRS regulations and still satisfy “safe harbor” requirements for avoiding ERISA coverage as employer-sponsored plans. Field Assistance Bulletin No. 2007-02, July 24, 2007.

IRS issues guidance concerning amendment procedures applicable to individually-designed and pre-approved qualified plans. Rev. Proc. 2007-44, June 13, 2007.

Merger with a multiemployer plan is not a permissible method of terminating a single-employer defined benefit pension plan. Beck v. Pace International, Inc., US Supreme Court, June 11, 2007.